Conducted by Scorpio Partnership for BNP Paribas Wealth Management, the survey explores the behaviours and trends of private investors and non-investors in Private Equity and Real Estate (PERE) funds. The report, which polled 337 High Net Worth Individuals (HNWIs) with more than USD5 million in investable assets across nine countries in Europe, Asia and the Gulf region, shows:

On average, in Private Equity and Private Real Estate funds while holding 15.8% in cash and a further 15.3% in stocks/equities

50% of HNWIs are willing to invest at least USD 500,000 in 2018 in private equity funds and 40% of HNW non-investors in Private Equity or Private real Estate funds are likely to invest into these asset classes in the near future.

For more than a third the benefit of these investments is to balance their wider portfolio; with a similar proportion led to consider this asset class by their Relationship Manager.

Study participants consisted of Millennials under 35 years old, Generation X / Generation Y and Baby Boomers. They confirm their increasing confidence in Private Equity and Private Real Estate solutions and underline their need for information and advice:

Over 60% of HNW individuals indicate that they were either familiar or extremely familiar with Private Equity and/or Private Real Estate Solutions.

One-third of HNW non-investors has never been introduced to these investment opportunities and rely mainly on their private banker and financial adviser for access.

“Over the past 12 months, we have seen a significant pick up in clients’ appetite for Private Equity and Private Real Estate funds. In this persistently low interest rate environment, investors are looking for diversification and double digit returns to optimise their portfolio’s risk return profile. We are aiming to raise almost a billion euros in 2018”, underlines Claire Roborel de Climens, Global Head of Private and Alternative Investments at BNP Paribas Wealth Management “The Private Market funds we are planning to launch over the next six months will allow our clients to fully benefit from exposure to the real economy in Europe, Asia or US where on the one hand, high-performing companies need to develop further and on the other, value-added Real Estate strategies can be implemented. These strategies respond to clients‘ demand and are differentiating for the ongoing development of BNP Paribas Wealth Management’s activity.”

PRIVATE MARKETS CHARACTERISTICS

Recognised as a profitable, illiquid and long-term investment with low volatility contributing concretely to the growth of the real economy with high return potential. These funds enable clients to diversify their wealth through different strategies (LBO, growth, value-added real estate…) and geographies (USA, Europe, Asia). In Private Equity, clients invest indirectly in unlisted companies at different stages of growth, by supporting their managers’ development strategies. In Private Real Estate, clients also like to invest in tangible real assets where value creation is implemented by local experts.

BNP Paribas Wealth Management is a leading global private bank and the largest private bank in the Eurozone. Present in three hubs in Europe, Asia and the US, over 6,800 professionals provide a private investor clientele with solutions for optimizing and managing their assets. The bank has €364 billion worth of assets under management (as at 31 December 2017) and was awarded “Best Private Bank in Europe, in Asia and in the Western United States” in 2017.

BNP Paribas Wealth Management has offered Private Equity as an asset diversification service since 1998, alongside Real Estate, Hedge Funds, Art Advisory and Agrifrance active in the field of rural and agricultural property.

Scorpio Partnership is the leading insight and business consultancy to the global wealth industry. The firm specializes in understanding the wealthy and the financial institutions they interact with. We have developed four transformational disciplines – SEEK, THINK, SHAPE and CREATE – each designed to enable business leaders to strategically assess, plan and drive growth. We leverage our deep insight into client needs and expectations to create practical and actionable business development strategies.

Scorpio Partnership has conducted more than 500 global assignments across wealth for institutions in the banking, fund management, family offices, law, trusts, regulation, IT and technology, insurance and charity sectors. In the course of these assignments, the firm has interviewed almost 75,000 private investors and advisors. Scorpio Partnership has won multiple awards for its consultancy surveys, market insight and thought leadership across Europe, Asia, and the United States. These awards have been voted by industry peers. The firm is part of McLagan, an Aon Hewitt group company.